ISLAMIC FINANCIAL PLANNING (ISB535)

FACULTY OF BUSINESS AND MANAGEMENT (BA 249)

INDIVIDUAL ASSIGNMENT

PREPARED TO:

SIR MUHAMMAD ABD HADI BIN ABD RAHMAN

PREPARED BY:

NUR FARAH ATIQAH BINTI NOR AZMAN (2021155805)

 ACKNOWLEDGEMENT

This is to thank everyone who helped make this project a reality without whom it would
not have been possible. First and foremost, I'd want to express my gratitude to Mr Kamarul Ariffin,
my uncle, who provided tremendous assistance, committed a significant amount of time to it, and
helped me comprehend how to complete this project. The project would not have been completed
without his supervision. Thank you also to my lecturer, Sir Abd Hadi and my beloved friends who
are willing to help me in completing this project.
 FAMILY BACKGROUND

NAME KAMARUL ARIFFIN BIN SHAMSUDIN

AGE 49 YEARS OLD
DATE OF BIRTH 13th JUNE 1972
PLACE OF BIRTH HOSPITAL KUALA LUMPUR
TYPE OF HOUSE SINGLE STOREY HOUSE
TYPE OF CAR PERODUA AXIA & HONDA CITY
OTHER ASSETS -
NUMBER OF PEOPLE LIVING 6 PEOPLE
IN THE SAME HOUSE
CHILDREN NAME 1. NUR MAHANI BINTI ABD RAHIM (Wife)
2. MUHAMMAD AIMAN BIN KAMARUL ARIFFIN
(Son)
3. SITI NUR AISYAH BINTI KAMARUL ARIFFIN
(Daughter)
4. MAIZATUL AKMA BINTI KAMARUL ARIFFIN
(Daughter)
5. MUHAMMAD RAYYAN BIN KAMARUL ARIFFIN
(Son)
6. AINUR FATIHAH BINTI KAMARUL ARIFFIN
(Daughter)
7. LAILA MAISARA BINTI KAMARUL ARIFFIN
(Daughter)
RELATIONSHIP UNCLE
Mr Kamarul Ariffin is a clerk of work on site. He earns a basic salary of RM5,600 per month and receives bonus based on his good
work performance. He pays income tax of RM250 monthly and contributes 11% of his basic monhtly salary and any bonus received
to EPF. He lives in a single storey house in Kuantan, Pahang and drives Honda City. He is also a husband to Puan Mahani and they
have five children.

ITEMS RM
Current value of clothing and shoes 8,000
Groceries per month 505
Dining out monthly 200
Petrol, toll, parking monthly 300
Utilities and phone bills monthly 700
House installIment per month 400
Car installment per month 1,250
Takaful medical card premium monthly 800
Textbook bought for the year 1,200
Current value of dekstop, laptop and printer 12,000
Quit rent and assessment tax 150
House market value 110,000
Car market value 45,000
Housing loan outstanding (if any) 34,000
Household furnishings current value 10,000
Tabung Haji or any investment bank account 7,000
Other expenses 5,000
Car insurance and road tax 1,000
Takaful medical insurance- value as at 2020 20,000
Savings account in Bank Islam or any bank 2,000
 Cash Flow for the year ended 31 October 2021

INCOME RM

Salary (RM7,600 X 12 months) 91,200

Bonus (RM2,500 X 12 months) 30,000

TOTAL INCOME 121,200

less: EXPENSES

Income tax 3,000

EPF [(RM91,200 + RM30,000) X 11%] 13,332

Groceries per month 6,060

Dining out monthly 2,400

Petrol, toll, parking monthly 3,600

Utilities and phone bills monthly 8,400

House installIment per month 4,800

Car installment per month 15,000

Takaful medical card premium monthly 9,600

Textbook bought for the year 14,400

Quit rent and assessment tax 1,800

Other expenses 18,000

Car insurance and road tax 12,000

TOTAL EXPENSES 112,392

SURPLUS/DEFICIT 8,808
 Mr Kamarul Ariffin’s Balance Sheet as at 31 October 2021

RM RM RM RM
ASSET LIABILITIES
Current
Liquid asset Liabilities
Saving account in
Bank Islam 2,000 - -
Total Liquid Total Current
Asset 2,000 Liabilities 0

Lifestyle Long-term
asset Liabilities
Clothing and Housing loan
shoes 8,000 outstanding (if any) 34,000
Dekstop, laptop Total Long-Term
and printer 12,000 Liabilities 34,000
House market
value 110,000
Car market
value 45,000
Household furnishings current
value 10,000
Total
Lifestyle
Asset 185,000 NETWORTH 180,000

Investment
Asset
Tabung Haji or any investment
bank account 7,000
Takaful medical insurance-
value as at 2020 20,000
Total Investment
Asset 27,000

TOTAL TOTAL LIABILITIES

ASSETS 214,000 & NETWORTH 214,000
 Financial Ratio of Mr Kamarul Ariffin

RATIO CALCULATION EXPLANATION

RM 180,000 / The ratio tells that by using networth and total assets, Encik
SOLVENCY RATIO
RM 214,000 = Kamarul Ariffin is able to pay all his debt and Because the ratio
[Netwoth/Total assets]
0.8411 value is positive, he is most likely debt-free

RM 8,808 / RM Based on the ratio, Encik Kamarul Ariffin saves his money
SAVINGS RATIO
121,200 = based on his cash surplus. He is a frugal person.
[Cash surplus/Income]
0.0727
RM 34,000 / RM With his income, he is able to pay off all of his debts on
DEBT SERVICE RATIO
121,200 = schedule. Because his debt-to-income ratio is less than 0.4, he
[Loan payment/Income]
0.2805 has a greater chance of repaying his entire loan.
The ratio indicates that debt financed 0.1589 of his assets. This
GEARING RATIO RM 34,000 / RM
suggests he took out a debt in order to acquire assets.
[Long term liabilities/Total 214,000 =
However, debt is still under control due to the low leverage
assets] 0.1589
ratio, which means there are fewer risks of going bankrupt.
The ratio can be interpret as, he has low level of debt since the
DEBT RATIO RM 34,000 / RM
ratio is below than one. It also indicate that he has more asset
[Total liabilities/Total 214,000 =
than liabilites. Thus, most of his assets are not funded through
assets] 0.1589
debt or loan.
 Tax assesment Mr Kamarul Ariffin for the year 2020

INCOME RM
Salary 91,200
Bonus 30,000
TOTAL INCOME 121200.00
(less) DONATIONS
Donations 700.00
Gift to apporved instuitions 600.00
AGGREGATE TOTAL INCOME 119900.00

(less) RELIEF
Individual relief 9000.00
Lifestyle relief 2500.00
Medical expense for father 2000.00
EPF & Family Takaful Insurance 6000.00
Child relief- (RM 2000 X 5 kids) 10000.00
Unmarried child relief (RM 700 X 12 X 1 KID) 8000.00
TOTAL RELIEF 37500.00

CHARGEABLE INCOME 82400.00

TAX CALCULATION
First RM 70,000 4600.00
following RM 12,400 @ 21% 2604.00

TOTAL TAX CALCULATED 7204.00

(less) Zakat rebate 2000.00
TAX CHARGED 5204.00
(less) MTD X12 annualized 1800.00

TAX REFUND RM1,800.00

 SUMMARY ON ASSETS AND LIABILITIES

Mr Kamarul Ariffin has enough asset to settle his liabilities which his total assets is more than his total
liabilities which is RM214,000 and RM34,000 respectively. Since Mr Kamarul Ariffin is 49 years old, he
plans to settle his house loan before he is 56 years old. For asset, he invests in some institutions, so that
he can have a backup asset in his life. As a father and husband, his lifestyle assets are majority to house
where he has many children and he wants a comfortable space for his family.

SUMMARY OF TAX ASSESSMENT

Based on the tax assessment for Mr Kamarul Ariffin, he is eligible for tax refund amounted RM
1800, this is because he has received exemptions and he has paid more than usual. Moreover,
he also paid zakat amounted RM2,000 in a year. Therefore, Mr Kamarul Ariffin shall received
funds from the Inland Revenue Board, due to his tax charged is in negative figure. According to
his monthly tax deductions, the refund is obliged to RM1800. He is entitled to RM 34750 in relief,
which includes lifestyle relief, individual relief, medical expenditures for his mother, EPF & family
takaful relief, child relief for 5 children, and unmarried child relief.

SUMMARY OF INCOME AND EXPENSES

Mr Kamarul Ariffin only has source of income from his salary and bonus. His average salary was
RM121,200 for a year. Most of his spending are based on his family expenses since he is the family
provider. His the one and only and the highest spending is on the housing loan outstanding which
amounted to RM34,000 per year. Since 2020, after the Control Movement Order (MCO) was announced
by the Government, Mr Kamarul Ariffin spends out of limits for his. As a result, he succeed in managing
his expenses for his family and himself.

RECOMMENDATION
 APPENDICES

This is Mr Kamarul Ariffin

Mr Kamarul Ariffin's cars

Mr Kamarul Ariffin's house and property